Did I just open a can of worm?

Question

I submitted an offer with a listing agent for a bank reo property. I did not hear back from the agent or the bank. the property went under contract. I guess their offer failed through, the property is back on the market. I decided to get my own agent and submit a different offer, the agent said my offer cannot be submitted because there is already an offer with other agent. Did I just pissed off both agent? What is my option if i still want the property?

Charlie MacPherson · Answer

@John Lee At this point you appear to be unrepresented with an open-ended offer flapping in the breeze.  This is not a good situation.  You could move on to put a different property under contract, only to have the bank accept your offer 6 months from now.

If you want to get this under control, I'd formally withdraw your offer and resubmit another with a new broker.  That can happen with the same document by using an addendum on the new offer stating that the prior offer dated XX/XX/XX is hereby withdrawn and replaced by the attached offer, dated XX/XX/XX.

This is a prime example of why buyers who are not experts in real estate transactions benefit from using a sharp buyer's broker.

Wayne Brooks · Answer

You can absolutely get your own agent and submit a new offer, the listing agent is just trying to keep your original offer alive.

You’d need to:

1) send in a withdrawal of the original offer, you have a right to since it has not been accepted.

2) submit a new offer

Theresa Harris · Answer

If you submitted an offer, then they need to reply to it.  Even if they reject it, your realtor should tell you that.  Call your agent and find out what happened.  Even if there is an offer on the table, if that offer hasn't been accepted, they can still look at other offers.  If it has been accepted, tell them you want yours as a backup offer if the deal falls through.

Max T. · Answer

the 2nd agent knows that the 1st agent has a pretty solid case for "procuring cause" and doesn't want to do work and end up not getting the commission.

Charlie MacPherson · Answer

@John Lee I'm presuming that your original offer had a time and date for expiration and that has now passed.  That means that the offer is dead.

Unless you signed a buyer's broker agreement with that listing agent, you are under no obligation to continue to work with him.

If my assumption re: expiration is correct, I believe your new buyer's agent is wrong.  There is no active offer and therefore that agent is free to represent you.  I would either call their managing broker directly or ask the agent to do so to get this clarified.  Or you can just find another agent.

If the previous offer is still active, I'd think seriously about withdrawing it in writing and getting a buyer's agent on your side to resubmit another.  That's because the seller's agent is legally obligated to negotiate on behalf of the seller.

They are, at least as far as this transaction goes, your opposition.  Far better that you have your own representation, unless you are an expert at negotiating real estate deals.  And one thing a sharp buyer's agent won't do is to submit offers without a short expiration window.

John Lee · Answer

She left the time for acceptance blank. She said the offer is on hold as the bank is considering a better offer

Did I just open a can of worm?

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